Social Security Administration Expedites Over 3.1 Million Retroactive Payments

‘Significant progress’ has also been made in terms of customer service, said the Social Security Administration.

The Social Security Administration office building in Waycross, Ga., on Aug. 28, 2024. Madalina Vasiliu/The Epoch Times

The Social Security Administration (SSA) has finished paying off retroactive payments to millions of recipients under the Social Security Fairness Act (SSFA) earlier than expected, the agency said in a July 7 statement.

Before the act, many beneficiaries were subjected to the windfall elimination provision (WEP) and government pension offset (GPO) provisions. These reduced or eliminated benefits for over 3 million people who received pensions based on work that was not covered by Social Security.

In January 2025, the SSFA was signed into law by President Joe Biden.

After the WEP and GPO were ended by the SSFA, millions of Social Security beneficiaries impacted by these provisions became entitled to receive retroactive payments. Retroactive payments are calculated from January 2024, the month when WEP and GPO no longer applied, according to a July 2 update from SSA.

The SSA said on July 7 that it had completed “over 3.1 million payments to all who were entitled under the Social Security Fairness Act (SSFA) five months ahead of schedule.”

In March, Lee Dudek, the acting Commissioner of Social Security, had said that President Donald Trump “made it very clear” he wanted the SSFA to be implemented as fast as possible.

In addition to retroactive payments, eliminating WEP and GPO made many Social Security recipients eligible for higher monthly benefits starting in April, the SSA said.

Certain teachers, firefighters, and police officers in many states are eligible for higher benefits, said the agency. So are federal employees covered by the Civil Service Retirement System and individuals whose work is covered by a foreign social security system.

SSA clarified that not all employees in these jobs may see their benefits increase.

“Most state and local public employees—about 72 percent—work in Social Security-covered employment where they pay Social Security taxes and are not affected by WEP or GPO. Those individuals will not receive a benefit increase due to the new law,” it said.

“Only people who receive a pension based on work not covered by Social Security may see benefit increases,” the agency said.

The SSFA was criticized by the advocacy group The Concord Coalition in December 2024, highlighting that most government employees receive both public pensions and Social Security because they contributed to both plans during their tenure.

Non-covered workers “do not receive Social Security benefits because they do not pay Social Security payroll taxes,” the group said.

“Non-covered workers are not being singled out for unfair treatment. Indeed, repealing the GPO and WEP would result in more favorable treatment. They would get more and pay less than everyone else. That would be an unearned windfall.”

According to the SSA, most Social Security beneficiaries eligible for higher benefits under SSFA began receiving updated amounts in April.

For certain beneficiaries whose cases are so complex that they cannot be processed automatically, more time is required to manually update the records, SSA said, adding that all beneficiary records are expected to be updated by early November.

Customer Service Technology

In its July 7 statement, the SSA also highlighted the “significant progress” it has achieved in customer service aspects.

For instance, the agency said it reduced the “average speed of answer” on its 800 Number to 13 minutes, down over 50 percent compared with last year’s annual average.

SSA is implementing technology that would allow 90 percent of calls to be handled via automated self-service options or callbacks, which it said will minimize hold times for callers.

“SSA has faced significant challenges in recent years, including service backlogs, long wait times, and low employee morale. The agency has ranked last among large federal agencies in employee satisfaction for three consecutive years,” the agency said.

The Social Security Administration is now working to reverse this trend under Commissioner Frank J. Bisignano by equipping workers with the resources and tools required to boost performance, according to the SSA.

“My top priority is to transform SSA into a model of excellence—an organization that operates at peak efficiency and delivers outstanding service to every American,” said Bisignano.

“The American people have waited long enough for better service, and they deserve the absolute best from their government.”

SSA’s customer service has been criticized by the nonprofit AARP, an advocacy group for people aged 50 and over.

In an April 7 letter to the acting commissioner of SSA, the AARP complained that they were seeing numerous reports about “website crashes and outages, long waits at overwhelmed field offices, and increasing phone hold times and disconnections when trying to contact customer service representatives.”

“This chaotic environment is fueling fear and concern among many older Americans,” it said. “Older Americans have paid into Social Security their entire working lives. They have earned not only their benefits, but also a high level of customer service and professionalism.”